What must happen to the shares of a shareholder in a physical therapy corporation if they die or become disqualified?

The correct response highlights an essential requirement within the framework of a physical therapy corporation regarding the ownership of shares. When a shareholder dies or becomes disqualified, there is a stipulated process that must be followed to ensure compliance with the regulations governing such corporations.

In this context, the shares held by the deceased or disqualified shareholder must be sold and transferred within a six-month period. This provision is designed to maintain the integrity and continuity of the corporation, ensuring that ownership remains within eligible parties.

The specified timeframe serves to prevent complications or extended periods where shares are not actively owned, avoiding potential legal or operational disruptions within the corporation. Share ownership in physical therapy corporations is tightly regulated to ensure that only qualified individuals maintain control, reflecting the importance of meeting the legal criteria established for practice ownership in California.

This approach not only protects the interests of the corporation but also ensures that the services provided maintain a standard of quality and ethical practice, consistent with California's regulations for physical therapy.